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REAL ISSUES. REAL ANSWERS: Margins VS. Market Share

“Look for more opportunities for installed sales, and try to identify niches that the ‘big guys’ aren’t interested in.”

1. Have the right products in inventory.
2. Be able to deliver in a timely manner.
3. Have a trained and experienced sales staff to take care of the customers. If you have these three things, you will have the business long term.”

“Excellent customer service and follow-up.”

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“In my opinion, the only way to do this is by providing excellent service. If you don’t have the best service, you get a choice: margins or market share. If you’re the ab- solute best around, though, you can have your cake and eat it, too. People will pay potentially a bit more to do business with you, especially if you’re smart about where and how you get those margins.”

“The only way to grab a new builder, contractor or remodeler who knows nothing about us is to get in when he encounters a problem with his current supplier, or go in with lower prices.”

“I believe it’s simple: Do a better job and use better materials than your competition, then support it with knowledge of your product. Our customers need to buy what we are selling, whether it be contractors or homeowners. As soon as they are comfort- able with us as people, and they can tell we know what we are doing, they will usually place the order.”

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“We believe the answer is about the depth of a company’s product lines and finding the customer that best fits your company. We sell lumber but we also have five brands of windows, nine brands of kitchen cabinets, a custom wood shop, a door shop, and a custom architectural window company. We have a dedicated window salesperson, a dedicated millwork salesperson and a cabinet salesperson with two designers assisting him. We also have inside and outside sales people who handle subdivision builders, custom builders, and remodelers.”

“When we prospect customers, we market the products we offer and also offer a re- bate program based on how many products they buy from us. Price becomes less important than the opportunity to consolidate their buying efforts and free up their time to run and manage their business.”

“By cutting the margin on low-profit, high-
volume materials to secure the business, and be sure that the package also includes the high-margin items needed to complete the job. This, coupled with superior service, will secure you a greater share of the market.”

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“Service. Selection. Integrity.”

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